When You List A House In San Mateo What Is The Commission?

I just got a call from a Realtor in Southern California, “When you sell a house in San Mateo County, what’s the commission?”

“The standard is 5 percent.  I don’t fight for 6 unless the transaction is going to be awful,” meaning extremely difficult.

“So when you look in the MLS you see 2.5 percent?”

“Yeah.  That’s become the standard.  Why?”

Jill’s family member is using an agent they’ve used many times in the past.  When she spoke to them about the sale she was shocked to learn that they were being charged 6 percent.  She wanted to know what the norm is.

Strong downward pressure on real estate commissions really hit in the height of the last market when houses were selling within a week with multiple offers.  Sellers complained that the effort to sell was low yet the 6 percent commission remained.

Now that the market has changed – those quick sales are a thing of the past – the commission standard has settled at 5.

Currently commissions are negotiated by the agent representing the seller.  Typically that amount is divided between the real estate offices representing buyer and seller.

Expectation is created and problems arise when something is outside of that norm.  People on either side are bound to feel cheated.

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